US Core Inflation at 3-Year Low as Bitcoin Price Reaches $64.7K

Bitcoin (BTC) surged past the $64,000 mark on May 15 as core inflation in the United States hit a three-year low. After the Wall Street open, BTC/USD reached a peak of $64,700, benefiting from the better-than-expected United States Consumer Price Index (CPI) data. The S&P 500 and Nasdaq Composite Index also reached all-time highs. The month-on-month CPI for April came in at 0.3%, slightly below expectations, while other figures aligned with predictions. This drop in core inflation could potentially support the case for interest rate cuts. However, not everyone shared the optimistic sentiment, as the Producer Price Index (PPI) numbers from the previous day indicated a third consecutive monthly increase. Federal Reserve Chair Jerome Powell maintained a dovish stance despite the data, stating that he wouldn’t call it hot, but rather mixed. Market odds for near-term rate cuts remained largely unchanged, with only 3.1% betting on a June cut and 28.3% for July. As for Bitcoin, the reaction to the CPI data caused a shift in the order books on exchanges. CoinGlass data revealed that the price was pushing through liquidity to the upside, forming a new block above the $65,000 mark. Popular trader Skew noted that spot buyers needed to maintain pressure and reclaim the 200-period exponential moving average as support on four-hour timeframes, which is currently at $63,195. The article concludes by stating that it does not provide investment advice, and readers should conduct their own research before making any decisions.